TOMMY HILFIGER
TOMMY HILFIGER’S “PREPPY WITH A TWIST” STYLES DROVE $6.7 BILLION IN 2014 GLOBAL RETAIL SALES
FINANCIAL HISTORY
2012
2013
2014
$3,217
$3,433
$3,582
($ IN MILLIONS)
TOTAL REVENUES
REVENUE GROWTH
5%
EBIT*
$437
7%
$479
NORTH AMERICA(1)
4%
LATIN AMERICA(2)
GLOBAL PRESENCE
TOTAL STORES:
~230
EUROPE (3)
TOTAL STORES:
~750
TOTAL STORES:
~200
TOTAL STORES:
~360
ASIA (EXCLUDING JAPAN)
(5)
(3) INCLUDES AUSTRALIA AND
NEW ZEALAND.
(4) INCLUDES THE MIDDLE EAST
AND AFRICA.
BUSINESS STRATEGIES
NORTH AMERICA(2)
LATIN AMERICA
THE CARIBBEAN.
42%
6%
* EXCLUDES NON-RECURRING ITEMS. SEE BACK OF PAGE FOR RECONCILIATIONS.
(1) INCLUDES THE U.S., CANADA
AND MEXICO.
(2) INCLUDES CENTRAL
AND SOUTH AMERICA AND
42%
ASIA (3)
$509
EUROPE(4)
(4)
10%
2014 GLOBAL RETAIL SALES
BY REGION: $6.7BN
Brand management and consistency, as we seek to ensure that our
products, quality and distribution reflect Tommy Hilfiger’s premium
designer status worldwide.
Category expansion, particularly within men’s tailored clothing,
underwear, women’s apparel and accessories.
Expanding across channels of distribution, with a particular focus on
e-commerce, retail, wholesale and growing our licensed operations.
(1) STORE COUNTS AS OF FEBRUARY 1, 2015.
(2) INCLUDES THE U.S. & CANADA.
(3) INCLUDES THE MIDDLE EAST AND AFRICA. INCLUDES CONCESSION LOCATIONS AND
FRANCHISEE AND DISTRIBUTOR STORES.
(4) INCLUDES CENTRAL AND SOUTH AMERICA, MEXICO AND THE CARRIBBEAN. ALL
LOCATIONS ARE LICENSEE STORES.
PRODUCT LINES
REVENUE DISTRIBUTION
TOMMY HILFIGER’S MAIN PRODUCT LINES
Tommy Hilfiger – Our core line, which embodies the brand’s
“classic American cool” spirit and “preppy with a twist” designs
and focuses on a 25 to 40 year-old consumer. Products are
sold domestically and internationally through our own retail
stores (specialty stores and outlet stores), through the
wholesale channel and through our e-commerce websites.
IN NORTH AMERICA, OUR MODEL IS PREDOMINANTLY
RETAIL-BASED, WHILE IN EUROPE, OUR DISTRIBUTION IS
PRIMARILY THROUGH THE WHOLESALE CHANNEL
TOMMY HILFIGER REVENUES BY DISTRIBUTION MODEL: NORTH AMERICA
WHOLESALE
Hilfiger Denim – This line is inspired by American denim classics
with a modern edge that is more casual than the Tommy
Hilfiger label. Targeting the 18 to 30 year-old denim-oriented
consumer, the line focuses on premium denim separates,
footwear, bags, accessories, eyewear and fragrance. Products
are primarily sold outside North America and can be
purchased in our own retail stores, through the wholesale
channel and through our e-commerce websites.
Hilfiger Collection – Hilfiger Collection is the pinnacle of the
Tommy Hilfiger product offering and features its most
directional styles for women, blending the brand’s Americana
heritage with contemporary influences. The collection targets
25 to 40 year-old consumers, and includes designs that
premiere on the runway during New York Fashion Week. Hilfiger
Collection is available globally at select Tommy Hilfiger stores
and wholesale partners, and through our e-commerce
websites.
2014 REVENUES: $1.6 BN(1)
RETAIL
28%
72%
(1) EXCLUDES LICENSING REVENUES.
TOMMY HILFIGER REVENUES BY DISTRIBUTION MODEL: EUROPE
RETAIL
WHOLESALE
61%
39%
Tommy Hilfiger Tailored – Targeting 25 to 40 year-olds, this line
integrates a sharp, sophisticated style with the brand’s
American menswear heritage. From structured suiting to casual
weekend wear, classics are modernized with precision fit,
premium fabrics, updated cuts, rich colors and luxe details
executed with the brand’s signature twist. Tommy Hilfiger
Tailored is available globally at select Tommy Hilfiger stores and
wholesale partners, and through our e-commerce websites.
2014 REVENUES: $1.7 BN(1)
(1) EXCLUDES LICENSING REVENUES.
ORGANIZATION CHART
TOMMY HILFIGER
U.S.
+
TOMMY HILFIGER NORTH AMERICA
TOMMY HILFIGER INTERNATIONAL
~45% OF 2014 REPORTED REVENUES
+
~15% 2014 EBIT MARGIN
~55% OF 2014 REPORTED REVENUES
+
~14% 2014 EBIT MARGIN
CANADA
LICENSING
EXCLUDES NON-RECURRING ITEMS. SEE BACK OF PAGE FOR RECONCILIATION OF 2012-2014 FIGURES.
EUROPE
JAPAN
LICENSING
GAAP TO NON-GAAP RECONCILIATIONS
(DOLLARS IN MILLIONS)
2014
EBIT RECONCILIATIONS
REVENUE
GAAP EBIT
ADJUSTMENTS(1)
NON-GAAP EBIT
NON-GAAP EBIT%
GAAP EBIT%
TOMMY HILFIGER NORTH AMERICA
$1,636
$243
$(2)
$245
15.0%
14.8%
TOMMY HILFIGER INTERNATIONAL
$1,946
$261
$(3)
$264
13.6%
13.4%
TOTAL TOMMY HILFIGER
$3,582
$504
$(5)
$509
14.2%
14.1%
(1) ADJUSTMENTS FOR THE YEAR ENDED FEBRUARY 1, 2015 REPRESENT THE ELIMINATION OF (i) THE COSTS INCURRED IN CONNECTION WITH THE COMPANY’S EXIT OF A DISCONTINUED PRODUCT LINE IN THE TOMMY HILFIGER JAPAN
BUSINESS; AND (ii) THE IMPAIRMENT OF CERTAIN TOMMY HILFIGER STORES IN NORTH AMERICA.
2013
EBIT RECONCILIATIONS
REVENUE
GAAP EBIT
ADJUSTMENTS(2)
NON-GAAP EBIT
TOMMY HILFIGER NORTH AMERICA
$1,542
$242
$12
$230
TOMMY HILFIGER INTERNATIONAL
$1,891
$261
$12
$248
TOTAL TOMMY HILFIGER
$3,433
$503
$24
$479
NON-GAAP EBIT%
GAAP EBIT%
13.9%
14.7%
(2) ADJUSTMENTS FOR THE YEAR ENDED FEBRUARY 2, 2014 REPRESENT THE ELIMINATION OF THE INCOME DUE TO THE AMENDMENT OF AN UNFAVORABLE CONTRACT, WHICH RESULTED IN THE REDUCTION OF A LIABILITY RECORDED AT THE
TIME OF THE TOMMY HILFIGER ACQUISITION.
2012
EBIT RECONCILIATIONS
GAAP EBIT
ADJUSTMENTS(3)
NON-GAAP EBIT
TOMMY HILFIGER NORTH AMERICA
REVENUE
$200
($1)
$201
TOMMY HILFIGER INTERNATIONAL
$221
($15)
$236
$421
($16)
$437
TOTAL TOMMY HILFIGER
$3,217
NON-GAAP EBIT%
GAAP EBIT%
13.6%
13.1%
(3) ADJUSTMENTS FOR THE YEAR ENDED FEBRUARY 3, 2013 REPRESENT THE ELIMINATION OF THE COSTS INCURRED IN CONNECTION WITH THE COMPANY’S INTEGRATION OF TOMMY HILFIGER AND THE RELATED RESTRUCTURING.